Philippine stocks fell on Monday as investors monitored the potential impact of Moody's lowering of U.S. credit rating.
The Philippine Berry Plant Stock Exchange Index (PSEI) fell 0.16% or 10.69 points to close at 6,454.84, while the widespread all-stock index fell 0.09% or 3.71 points to 3,765.66.
“The PSEI ended the deal slightly lower, reflecting the local market's reaction to Moody's downgrade to the U.S. credit rating,” said Juan Paolo E. Colet, managing director of Bank of China Capital, in a Viber message. “While the downgrade itself is not surprising, investors are waiting for whether the move will trigger a more unfavorable movement in U.S. Treasury production, which may make the stock market likely to not set up.”
AP Secureities, Inc. “Filipino stocks assess credit risk after Moody's lowered U.S. credit ratings,” said Alfred Benjamin R. Garcia, head of research.
Moody’s Friday’s ratings lowered long-term issuers and senior unsecured ratings in the U.S. from “AAA” and shifted the outlook from “negative” to “stable.”
Moody's said in a statement that the downgrade of the U.S. rating “reflects over a decade of growth in government debt-to-interest payment ratios, i.e. higher than the level of sovereigns with similar ratings.”
Reuters reported rising fiscal yields and U.S. stock futures were lost on Monday as Moody lowered its U.S. sovereign credit rating late Friday.
The 10-year yield in the U.S. rose 7 basis points to 4.51%. U.S. President Donald J. Trump has risen 30-year yields by more than 5% for the first time since April 9.
“Philippine stocks started this week as local markets continue to digest company revenue and monitor potential political shifts after the election,” Luis A. Limlingan, head of sales at Regina Capital Development, added in Viber’s message.
The sector index separated on Monday. Property fell 1.69% or 39.27 points to 2,272.26; industrial communities fell 0.99% or 91.59 points to 9,080.64; financial conditions fell 0.88% or 21.30 points to 2,397.99.
Meanwhile, mining and oil rose 1.15% or 104.65 points to 9,184.73; services climbed 1.14% or 24.45 points to 2,155.34; holding companies rose 1.1% or 59.57 points to 5,475.56.
The value turnover rate fell to 6.19 billion p61.9 billion on Monday, with shares trading from 6.59 billion p6.59 billion shares, and 730.87 million shares were exchanged on Friday.
The number of rejecters far exceeded that of progressivers, 109 to 86, while 49 names remained unchanged.
On Monday and Friday, sales from foreign sales fell from 406.52 million P406.52 million to 223.7 million. – Sheldeen Joy Talavera and Reuters
